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Over 60? Here Are 9 Hidden Costs of Buying a Home To Consider

Being informed can still make buying later in life a smart financial move.

By Cassandra Yorgey

Edited by Lauren Wellbank

Updated March 1, 2025

Homeownership can hit differently when nearing retirement age. Thoughts of downsizing or relocating to a warmer climate may seem appealing, but there can be some surprising costs associated with buying a home during your second act that you may not be aware of.

Things like age-related renovations and having to hire out for maintenance can all add up, which is why it’s important to know what you’re getting into before buying. Here's a look at some hidden costs of owning a home later in life and some smart homeowner moves you'll want to make so these expenses don't catch you off guard.

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Maintenance and repair costs

Not every home has been lovingly repaired and maintained as needed, and nearly every new homeowner discovers places where corners were cut (or blatantly ignored) to save a few bucks. Retirees who have been living in their own well-maintained home for many years could be caught off guard by how much needs to be fixed when moving into a different house. As such, it’s recommended to budget between 1-4% of a home’s value for repairs and ongoing upkeep.

Of course, you may want to pad that number a bit if you’re over the age of 60, as you may not feel up to tackling some of these tasks on your own, which can require the extra help of hiring a handyperson and contractor to take care of even small repairs for you.

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Taxes

Real estate and school taxes can cost thousands of dollars every year. The good news for seniors is that some states allow hefty discounts for those retirees who are paying their tax bill while on a fixed income.

These amounts vary based on location, so it’s important for homebuyers to take a look at the exemption requirements in the municipality where they are moving so that they can discover whether or not they will be able to take advantage of an exception or else be forced to foot the whole bill.

Closing costs

Just when you think you’re done, closing costs come rolling on to the bill. Loan origination fees, home inspections, and title insurance can add significant amounts to your bottom line, which is why it’s advisable to set aside between 3-6% of the loan balance for closing fees.

It’s extra important for retirees to be aware of just how much these closing costs can amount to, because when you’re living on a fixed income you may not have an extra paycheck coming in between the day you receive your final figures and the closing date when the money will be due.

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Utility bills

When you retire, you may find yourself spending more time at home, which can translate into higher electric bills.

And while the difference in utility costs can vary between locations, and factors such as gas versus electric can make a big difference, solar options can significantly lower monthly utility bills. Of course, there is a trade-off since they come with a higher upfront cost.

Retirement years often mean operating on a fixed income, so looking at properties that already have solar panels installed can reduce or even eliminate your monthly electric bill.

Homeowners insurance gaps

The point of having an insurance policy is to cover unexpected problems, but expected problems are becoming harder to cover under policies. Houses located in flood zones may not be able to get flood coverage. Same with wildfires, hurricanes, earthquakes, and other regularly occurring natural disasters that insurance companies don’t want to shell out money to cover.

Insurance is a system of risk transfer that allows homeowners to mitigate uncertain and catastrophic loss risks in exchange for a certain, steady, smaller amount of money. This makes it vital to make sure insurance coverage is in alignment with potential risks, or else the homeowner will see no benefit and could end up with untenable costs in the event of disaster.

If you are retired, this could mean spending part of your nest egg paying for damages that weren’t covered by your policy.

Homeowners Association (HOA) fees

Condominiums and houses in communities often come with associated HOA fees, which can be either monthly or annually. These typically range anywhere from $200-400 per month, and additional fees can be added when a home is sold as a “transfer fee.”

This could be a surprise to retirees who decided to move into a home located within an HOA to take advantage of the reduced maintenance or the close-knit community vibes, especially if they have never lived in one before.

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Outdoor maintenance

Lawn care, tree trimming, and snow removal may not be huge considerations to the young and spry, but aging can make those tasks more difficult every year. Older home buyers may want to avoid properties with a lot of surrounding land, or will want to budget for outsourcing those jobs to others.

Lawn care expenses can be as high as $125 per visit, while snow removal runs about $350-450 per year. Tree trimming varies depending on the trees, but expect to pay between $200-750 for services.

Exterminators

Depending on location and personal tolerance for creepy-crawlies, regular extermination services may be required to keep homes free of pests. Keeping a clean and orderly house won’t necessarily keep pests away, especially if one resides in the natural habitat where those pests regularly wander in and make themselves at home.

Pest problems can sneak up quickly, and retirees planning to spend time traveling will want to make sure they aren’t coming home to a surprise infestation that occurred while they were away.

Budgeting for routine pest control can save heavy travelers from costs associated with pest damage. Pricing is often based on factors such as pre-existing issues, square footage, and the number and type of services needed.

Hiring movers

Let’s face it, if you’re over the age of 60 you may not be planning to rent a truck and move all your belongings from your old house to your new house on your own. That can mean outsourcing this job to a third-party, which could add thousands of dollars onto the amount you were already prepared to pay for your home.

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Bottom line

Consumers can’t buy so much as a concert ticket without getting hit with hidden fees these days, so buying a home at any age is going to come along with some unexpected costs. But, those nearing or past retirement age will want to be especially mindful of those fees that they probably didn’t have to deal with the last time they bought a new home.

Of course, that’s not to say that buying a home over the age of 60 doesn’t come with plenty of benefits. That’s because owning a home can offer retirees additional resources, such as tapping into home equity, if they’re looking for a way to fund their post-retirement adventures, like buying a camper to travel the country or to get some extra cash to treat their grandkids to a trip to Disney.

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